1 Reason Why Investors Shouldn't Ignore Rivian's Long-Term Prospects
It's challenging to maintain profitability in the auto industry as it's capital-intensive and cyclical, and electric vehicles' added complexity makes it even more difficult. Up-and-coming electric-vehicle maker Rivian (NASDAQ: RIVN) is finding out the hard way that this industry is unforgiving and demands results.
After its 2021 IPO, which was the largest of any company since 2014, Rivian is proving that its goal of offering drivers electric sport utility and truck options fills a gap in an electric vehicle industry dominated by sedans and coupes. Numbers from the company's Q2 earnings report show that consumers increasingly want gas alternatives that allow outdoor enthusiasts to maintain their driving preferences.
For the second quarter, the company received another 8,000 pre-orders. The total number of reservations sits around 98,000 now. An increase in demand means production should follow suit -- and Rivian produced and delivered more cars last quarter than ever before.
Source Fool.com
